During July 20x7, Fan-Qi, Inc., sold 500 units of its product Ultima for

$8,000. The following units were available:

A sale of 500 units was made after purchase 3. Of the units sold, 200 came from beginning inventory and 300 came from purchase 3.
Determine cost of goods available for sale and ending inventory in units. Then determine the costs that should be assigned to cost of goods sold and ending inventory under each of the following assumptions: (1)
Costs are assigned under the periodic inventory system using

(a) the specific identification method,

(b) the average-cost method,

(c) the FIFO method, and

(d) the LIFO method. (2) Costs are assigned under the perpetual inventory system using

(a) the average-cost method,

(b) the FIFO method, and

(c) the LIFO method. For each alternative, show the gross margin. Round unit costs to cents and totals to dollars.

Transcribed Image Text:

Units Cost Beginning inventory 200 $ 2 Purchase 1 80 4 Purchase 2 120 6 Purchase 3 300 9 Purchase 4 180 12